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Registered Office: 301, Centre Point,

Dr. Bababsaheb Ambedkar Road, Parel, Mumbai – 400 012

Website: www.Stockholding.co.in

Dated 29 April 2016

Request for Proposal (RFP)

For

Corporate Agency Arrangement for

Life Insurance, General Insurance & Standalone Health Insurance Business

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Index

Sr. No Particulars Page No. Bid details & Important dates for Bidders 3

A General Information 4 B About StockHolding Corporation of India Ltd 4 C Objectives 4-5 D Bidders Eligibility Criteria 5-6 E Clarification and Amendment of RFP Documents 6 F Rejection of Bids 6-7 G Proposal Validity 7 H Short listing & Selection of Insurance Partner 7 I Preparation of Proposals 8 J Submission, Receipt, and Opening of Proposal 8

Form – 1 Covering Letter for Proposal submission 9-10 Form – 2 Organisation snapshot 11 Form – 3 Organisation Details 12 Form – 4 Products & Commission 12 Form – 5 Channel wise Business break-up of Business 13 Form – 6 Segment Wise Business (for Life Insurance companies) 14 Form – 7 Segment Wise Business (for General Insurance companies) 14 Form – 8 Segment Wise Business (for Standalone Health Insurance

companies) 15

Form – 9 Claim Settlement 15 Form – 10 IRDAI Penalty & Warnings 16 Form – 11 Grievance Redressed 16 Form – 12 Distribution Parameters 17 Form – 13 Business & Revenue Estimate 18 Form – 14 Support (Other than Technical) 19 Form – 15 Support (Technical) 20 Form – 16 Hospital Network(For General & Standalone Health Insurers

only) 21

Form – 17 Third Party Administrator(For General & Standalone Health Insurers only)

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Schedule 1 Form of Board Resolution 23

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Request for Proposal (RFP) for strategic tie-ups with Life, General & Standalone Health

Insurers to promote Insurance Products vide Corporate Agency Arrangement

Bid details & Important dates for Bidders

Sr. No. Subject Date/ Time 1 Date of RFP 29 April 2016 2 Objective Selection of Life Insurance, General

Insurance & Standalone Health Insurance Companies for corporate agency tie up under IRDAI Open Architecture Policy.

3 Date and Time for seeking written clarification to RFP

05 May 2016 by 5.00 PM

4 Date and Time by when StockHolding will respond to the clarifications sought

by Bidders

07 May 2016

5 Date and Time for Bidders to response to RFP

16 May 2016 by 5.00 PM

6 Date of Opening of Bid 17 May 2016 7 Presentation by Qualifying Bidders Shall be intimated by StockHolding 8 Address for Submission of Bid & Place

of Opening of Bids Ms. Pandula Sreelakshmi Divisional Manager – Insurance New Products Department StockHolding Corporation of India Ltd. Center Point, Unit No - 301, 3rd Floor, Dr. B. Ambedkar Road, Parel, Mumbai – 400012 Tele: 022- 61779400/9401 Fax: 022- 61779058

9 Email address psreelakshmi@stockholding.com 10 Website www.stockholding.co.in 11 Total No. of Pages of RFP document 23

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A. General Information: StockHolding Corporation of India Ltd. (hereinafter called as “StockHolding”) is exploring the possibility of entering into a distribution partnership of Life, General & Standalone Health insurance companies by way of corporate agency arrangement, for which StockHolding invites proposals from existing insurance companies in India(‘Bidder’). Bidders are hereby advised to carefully review and submit all relevant information as sought in the RFP. Details of the objectives, eligibility and qualification criteria, data & documents required to be submitted along with RFP, criteria that would be adopted for evaluation of the responses for short listing and other information is contained in the RFP document. The RFP document can be downloaded from our website www.Stockholding.co.in B. About StockHolding Corporation of India Ltd.

StockHolding was promoted as a Public Limited Company in 1986. StockHolding is promoted by leading Financial Institutions and Insurance Majors such as Industrial Finance Corporation of India (IFCI), Specified Undertaking of Unit Trust of India (SU-UTI), Life Insurance Corporation of India (LIC), General Insurance Corporation (GIC), New India Assurance (NIA), National Insurance Company Limited (NICL), The Oriental Insurance Company Ltd (TOICL) and United India Insurance Company (UIC), all leaders in their respective fields of business. StockHolding is a Government Company, being a subsidiary of IFCI. StockHolding has Pan India network of close to 190 branches spread across more than 150 cities/towns. StockHolding has positioned itself as one of the market leaders providing financial services over the last 29 years and holds Assets under Custody of ` 30 trillion, the largest in India. StockHolding enjoys the trust of lakhs of customers given its institutional status and has a proven track record of Process, Operational and Service capabilities. StockHolding provides Demat, Sub Broking, e-Stamping, Third Party Products distribution, Document Management System and Bullion Services. StockHolding is also a Point of Presence (POP) for National Pension Scheme. StockHolding was a corporate agent promoting Insurance products of one Life Insurance Company and one Non Life Insurance Company which are Government of India Undertaking. The Corporate Agency license was surrendered in 2011 due to various business prepositions. However, now StockHolding intends to re-enter the Insurance distribution channel vide Corporate Agent (composite) as per the latest IRDAI guidelines. Keeping in view the earlier experience, exposure and or business continuity relations will continue with the earlier strategic alliances. With regards to further tie ups, StockHolding hereby invites new Insurers from the respective segments.

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C. Objectives

I. In view of the new Corporate Agency guidelines notified by IRDAI, StockHolding has decided to go for multiple tie up for one &/or more Life, General & Standalone Health Insurance Business.

II. With a view to provide full range of financial products to its customers and to realize full value of its reach and customer base, StockHolding has taken a view to evaluate and thereafter enter into Corporate Agency Arrangement for distribution of Insurance products, subject to all statutory clearances and approvals from all relevant Authorities in this behalf, under the extant laws and regulatory framework.

III. StockHolding would like to enter into a Corporate Agency (Composite) arrangement with shortlisted Life, General &/or Standalone Health Insurers.

IV. Once the responses to the RFP are received, StockHolding will start the evaluation process and finalize the most suitable Insurers.

D. Bidders Eligibility Criteria: It is mandatory for the potential bidders to ensure that the following minimum eligibility criteria are met in order to participate in the process: Life Insurance Companies:

1. Should have been registered with IRDAI under the Life Insurance category and poses valid IRDAI license as on date of submission of RFP response, for procuring insurance business in India.

2. More than 12 financial years of business operations as on 31 March 2016 3. Branch network in excess of 200 branches 4. Capital Base in excess of Rs.1500 Cr 5. Minimum of 900 Crores Weighted Received Premiums for Financial Year 2015-16. 6. 90% or above overall claim settlement ratio for the last three years 7. Assets under Management in excess of Rs.15,000 Cr as on 31 March 2016 8. Solvency of minimum 150% 9. Must be profitable since last three financial years (after adjusting for accumulated losses

if any) General Insurance Companies:

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1. Should have been registered with IRDAI under the General Insurance category, and poses valid IRDA license as on date of submission of RFP response, for procuring insurance business in India.

2. More than 12 financial years of business operations as on 31 March 2016 3. Branch network in excess of 200 branches 4. Capital Base in excess of Rs.175 Cr 5. Minimum of 2900 Crores Gross direct premium Income Underwriting as on 31 March

2016. 6. 95% or above overall claim settlement ratio for the last three years 7. Solvency of minimum 150% 8. Must be profitable since last three financial years (after adjusting for accumulated losses

if any)

Health Insurance Companies:

1. Should have been registered with IRDAI under the Standalone Health Insurance category, and poses valid IRDAI license as on date of submission of RFP response, for procuring insurance business in India.

2. Should have been operational for more than 2 financial years in India. 3. Capital Base in excess of Rs.170 Crores. 4. 90% or above overall claim settlement ratio. 5. Solvency of minimum 150%.

E. Clarification and Amendment of RFP Documents

The Bidder may request clarifications on any clause of the RFP document up to 05 May 2016. Any request for clarification must be sent by standard electronic means to insurance@Stockholding.com. StockHolding will respond in writing or by standard electronic means, if necessary will load the responses on its website. Should StockHolding deem necessary, it may amend the RFP as a result of any clarification. At any time before the submission of Proposals, StockHolding may amend the RFP by issuing an addendum and hosting it on our website. The addendum will be binding on all the bidders. To give bidders reasonable time, in which to take an amendment into account in their proposals, StockHolding may, if the amendment is substantial, extend the deadline for the submission of Proposals. F. Rejection of Bids StockHolding reserves the right to reject the Bid if,

The Bid is incomplete as per the RFP requirements Any condition stated by the Bidder is not acceptable to StockHolding If the RFP and any of the terms and conditions stipulated in this document are not

accepted by the authorized representatives of the Bidder

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Required information is not submitted as per the format given Any information submitted by the Bidder is found to be untrue / fake / false The Bidder does not provide, within the time specified by StockHolding, the

supplementary information / clarification sought by StockHolding for evaluation of the Bid.

StockHolding shall be under no obligation to accept any offer received in response to this RFP and shall be entitled to reject any or all offers without assigning any reason whatsoever. StockHolding may abort the entire process at any stage, thereby without incurring any liability to the affected bidder(s) or any obligation to inform the affected bidder(s) of the grounds for our action. Proposals received after the specified time on the last date shall not be eligible for consideration and shall be summarily rejected. G. Proposal Validity All Proposals shall be valid for a period of 180 days from the last date of submission mentioned. StockHolding will make its best effort to complete the process within this period. However, should the need arise StockHolding may request the Bidder to extend the validity period of their proposals. Bidders, who do not agree, have the right to refuse to extend the validity of their Proposals; under such circumstance, StockHolding shall not consider such proposal for further evaluation. H. Short listing & Selection of Insurance Partner The RFP response may be sent or submitted at Head Office of StockHolding Corporation of India Ltd. at the following address, complete with all the requirements as given in the RFP document latest by 5.00 PM on 16 May 2016 addressed to: Ms. Pandula Sreelakshmi Divisional Manager – Insurance New Products Department StockHolding Corporation of India Ltd. Center Point, Unit No - 301, 3rd Floor, Dr. B. Ambedkar Road, Parel, Mumbai – 400012 No proposal will be accepted after this date and time. StockHolding will not be responsible for any postal delays and submission by way of e-mail is not acceptable. Bidders are to submit the RFP in hardcopy format in original along with one set of photocopy and 2 soft copies by means of CD .The documents in the CD should be in no other format other than word, excel and power point

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Bids of only those Bidders will be evaluated, who meet the minimum eligibility criteria as specified in the RFP. Evaluation of all eligible bids will be done on basis the information sought in the RFP by StockHolding officials and/or an expert. They would further evaluate the responses and may call for any additional details as required. The qualified bidders meeting the eligibility criteria will be called for a presentation and discussion. I. Preparation of Proposals In preparing their Proposal, Bidders are expected to examine in detail the documents comprising the RFP. Material deficiencies in providing the information requested may result in rejection of a Proposal.

While preparing the Proposal, the Bidder must give particular attention to the following: The data should be furnished strictly in accordance with the format specified All monetary numbers should be in INR. Denomination in INR Crores is preferred for

large numbers. Annual numbers for Indian operations should be for Fiscal Year ending March 31’2016

unless otherwise specified. Submission of the data in the wrong type of formats will result in the Proposal being deemed non-responsive. J. Submission, Receipt, and Opening of Proposal The original bid shall contain no interlineations or overwriting, except as necessary to correct errors made by the Bidders themselves. The person, who has signed the proposal, must initial such corrections. An authorized representative who would be signing the Submission letter shall initial all pages of the original Bid Document with company seal. The Bid documents along with the data as per the formats mentioned in the Data Sheet must be submitted at the same time but in a single sealed envelope duly super scribed as “StockHolding Corporation of India Ltd. – RFP for Corporate Agency (Composite)” The bids would be opened on 17 May 2016 at the Head Office of StockHolding Corporation of India Ltd. From the time the Proposals are opened to the time the Bidders are shortlisted, the Bidder should not contact StockHolding on any matter. Any effort by Bidders to influence StockHolding in the examination, evaluation, ranking of Proposals, and recommendation for award shall result in the rejection of the Bidders’ Proposal. StockHolding reserves the right to seek clarifications from the Bidders.

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Form-1 Covering Letter for Proposal submission

(To be submitted on Company Letter head)

[Location, Date] To: Ms. Pandula Sreelakshmi Divisional Manager - Insurance New Products Initiative Department StockHolding Corporation of India Ltd. Center Point, Unit No - 301, 3rd Floor, Dr. B. Ambedkar Road, Parel, Mumbai – 400012 Dear Sir / Madam, Sub: RFP for proposed Corporate Agency Arrangement with Stock Holding Corporation of India Ltd. for Life / General / Health [insert] Insurance Business

1. We, the undersigned are duly authorized to represent and act on behalf of [insert] (“Bidder”) in terms of the enclosed Board resolution at Schedule 1.

2. Having reviewed and fully understood all information provided in the RFP Document dated (Insert) issued by StockHolding, we [Bidder Name] are hereby submitting our Bid.

3. Our Bid is unconditional, valid and open for acceptance by StockHolding up until 180 days from the last date of submission of the RFP.

4. We undertake that we shall make available to StockHolding any additional information clarification it may find necessary or require to supplement or authenticate the Bid.

5. We hereby agree, undertake and declare as under: a. In the event that StockHolding discovers anything contrary to our above declarations,

it is empowered to forthwith disqualify us and our Bid. b. We undertake that in case there is any change in facts or circumstances during the

Bidding process, and we are being disqualified in terms of the RFP, we shall intimate StockHolding of the same immediately.

c. We further declare that we have not been declared ineligible for corrupt or fraudulent practices in any bidding process in the past five years.

d. We confirm that StockHolding and its authorized representatives are hereby authorized to conduct any inquiry or investigation to verify the veracity of the statements, documents, and information submitted in connection with this Bid and to seek clarifications from our advisors and clients regarding any financial and technical aspects.

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e. We hereby irrevocably waive any right which we may have at any stage at law or howsoever otherwise arising to challenge or question any decision taken by StockHolding in connection with the selection of the Bidder or in connection with the Bidding process, in respect of the above mentioned Proposed Tie-up and the terms and implementation thereof.

6. We understand that:

a. All information submitted under this Bid shall remain binding upon us. b. StockHolding may in their absolute discretion reject or accept any Bid or cancel the

Bidding Process. c. StockHolding has the right to reject our Bid without assigning any reason for the

Proposed Tie-up and can also reject all Proposals. Otherwise and hereby we waive our right to challenge the same on any account whatsoever.

d. StockHolding is not bound to accept any Bid that it may receive pursuant to the RFP.

7. We acknowledge that StockHolding will be relying on the information provided in the Bid and the documents accompanying such Bid for selection of the Bidders and we declare that all statements made by us and all the information pursuant to this letter are complete, true and accurate to the best of our knowledge and belief.

8. We hereby unconditionally undertake and commit to comply with the timelines as specified in terms of the RFP or as extended by StockHolding from time to time at its sole discretion.

9. This Bid shall be governed by and construed in all respects according to the laws of

India. Courts in Mumbai, shall have exclusive jurisdiction in relation to any dispute arising from the RFP, this Bid and the Bid process.

We confirm that we are complying to the IRDAI guidelines. Name of the Bidder Signature of the Authorized Person Name of the Authorized Person Company rubber stamp/seal

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Form -2 Organisation snapshot

1

Name of the Applicant Firm

Complete address – H.O.

Board no. - Head Office Website

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Names of the JV Partners & % of stake held by each as on 31 March 2016 1. 2. 3.

3 Year of establishment

4 Month & Year of Commencement of Business

5 IRDAI License number

6 Number of Branches as on 31 March 2016

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Financial Information 2013-14 2014-15 2015-16 Invested Capital (INR Cr) Operating Profit / (Loss) (INR Cr) Profit / (Loss) after Tax (INR Cr) Accumulated profit / loss (INR Cr) Networth (INR Cr) AUM (INR Cr) Solvency Ratio

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Business Information 2013-14 2014-15 2015-16 Number of Policies (NOP’s) Gross Direct Premium (INR Cr) Claims Paid (INR Cr)

9 Combined Ratio (for other than Life Insurers)

2013-14 2014-15 2015-16

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Form – 3 Organisation Details

A. Please provide the list of All Board of Directors as on Date with a brief background of each.

B. Please provide the organization chart as on Date showing the structure of various departments that exist and the reporting structure of respective functional heads.

C. Please provide the structure & hierarchy of Corporate Agency channel as on date. D. Please provide the list of Top Management Executives as on date with their Names,

Designation & e-mail id’s in the format as given below:

Name Designation e-mail

E. Please provide the number of branches as on March 31,2016 in each State or Union Territory as

per the format given below:

State / Union Territory No. of Branches

Form – 4 Products & Commission

Name of the Product Product Category Maximum

Commission approved by IRDAI

Maximum Commission offered to

StockHolding*

* Within the permissible IRDA regulations and guidelines.

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Form – 5

Channel wise Business break-up of Business

Particulars Gross Premium 2013-14 2014-15 2015-16

Tide Agency

Corporate Agent (Bank)

Corporate Agent (Others)

Brokers

Web Sales

Direct Sales Team

Others

Total

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Form – 6

Segment Wise Business (for Life Insurance companies)

Sl.No. Details 2013-14 2014-15 2015-16 1 Total new business premium 1 a Single premium 1 b Regular premium 2 Annualized New business premium 3 Renewal premium 4 Product mix 4 a ULIP 4 b Traditional 4 c Par 4 d Non Par 5 Total # of policies 6 Average premium per policy (INR lakhs ) 7 Average sum assured per policy (INR lakhs) 8 Persistency ratio (%) 8 a For 13th Month 8 b For 25th Month 8 c For 37th Month

Form – 7

Segment Wise Business (for General Insurance companies)

FY Fire Marine Motor Health Others Total

2013-14

2014-15

2015-16

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Form – 8

Segment Wise Business (for Standalone Health Insurance companies)

FY Health Travel Personal Accident Others Total

2013-14

2014-15

2015-16

Form – 9

Claim Settlement

Particulars 2012-13 2013-14 2014-15

No. of Policies

Amount of claim

No. of Policies

Amount of claim

No. of Policies

Amount of claim

Claims pending at start of year (A) Claims intimated / booked (B) Total Claims (C=A+B) Claims paid (D) Claims repudiated (E) Claims Written Back (F) Claims pending at end of year (G=C-D-E-F)

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Form – 10

IRDAI Penalty & Warnings

FY Penalty /Warnings Amount of Penalty levied

Detailed Reason for Action

2011-12

2012-13

2013-14

2014-15

2015-16

Form – 11

Grievance Redressed

Financial Year

Opening Balance of

Grievances c/f

Grievance Reported during

the year

No. of grievances resolved during the

year

No. of grievances pending at the end of

the year

FY 2013-14

FY 2014-15

FY 2015-16

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Form – 12

Distribution Parameters: Please provide List of Corporate Agent for the organization as on March 31, 2016. Corporate Agency Sales Force (No. of Staff)

Corporate Agent – Banks Name of the Bank Total Premium (FY15-16)

Corporate Agent of Bidder Since

1 2 3 4 5 6

Corporate Agent - Others Name of the Organization Total Premium (FY15-16)

Corporate Agent of Bidder Since

1 2 3 4 5 6

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Form – 13

Business & Revenue Estimate

1. Please provide the Estimated Potential for Next 3 Years that StockHolding holds to do Insurance Business and earn revenue from the same.

Year 1 Year 2 Year 3

NOP's

Gross Direct Premium Revenue to StockHolding

2. Please provide a detailed Business Strategy & Road Map to achieve the same.

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Form – 14

Support (Other than Technical)

Please elaborate on the kind of support that Bidder will provide to StockHolding on each of the parameters as listed below. The Bidder may feel free to add any other support that it may wish to provide to the Bank which helps in increasing the business & revenue. Kindly note that this does not refer to commercial support or payment. The support committed below should be in line with IRDA guidelines, to help StockHolding increase insurance business and insurance coverage suited to customer needs. Sr. No. Support Remarks

1 Manpower

2 Training

3 Marketing

4 Operational

5 Claims

6 MIS

7 After Sales Service

8 Any Other Support (Pls specify)

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Form – 15

Support (Technical)

Technology Support

Tablet/mobile based technology for sales support staff and Corporate Agent

System Capability Available / Not Available Web Mobile/Tablet 1. Content Management ( brochures, product presentation, competition benchmarking, videos etc)

2.1 Lead Management – Branch employee as user

2.2 Lead management with Benefit illustration/premium calculator

3.1 Sales Process -Form Filling 3.2 Sales Process- Electronic Payment 3.3 Sales Process- Underwriting 3.4. Sales Process- e-signature 4. Pre Issuance Verification call

5. Additional requirement document upload

6. MIS Branch wise/Customized & as per Regulatory Requirements

7. Tracking of Issuance & Servicing Request

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Form – 16

Hospital Network(For General & Standalone Health Insurers only) as on March 31, 2016

Name of State No. Of Hospitals on Panel No. Of Hospitals providing cashless facility

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Form – 17

Third Party Administrator(For General & Standalone Health Insurers only)

Do you have a In house TPA or are the services out sourced?

Sr. No Name of TPA

No. of Hospitals at the beginning of year

No. of Hospitals added to the network during the year

No. of Hospitals withdrawn or removed till March 31, 2016

Total number of hospital in the network in till March 31 , 2016

Declaration:

All the information furnished by us here in above is correct to the best of our knowledge and belief.

We have no objection if enquiries are made about the work listed by us in the accompanying sheets / annexure.

We agree that the decision of StockHolding in selection process will be final and binding on us. We confirm that we have not been barred / blacklisted / disqualified by any Regulators /

Statutory body in India. We understand that if any false information is detected at a later date, the assignment shall be

cancelled at the discretion of StockHolding. Place: Signature of Applicant: Date: Name & Designation/ Seal of Organization

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Schedule 1

Form of Board Resolution CERTIFIED TRUE COPY OF THE MEETING OF THE BOARD OF DIRECTORS OF [BIDDER] HELD ON [ ] AT [ ] “RESOLVED THAT, * + and * +, Directors/Officers of [Bidder], whose specimen signatures appear below, be and are hereby jointly and severally authorized, to do all such acts, deeds and things as are necessary or required in connection with or incidental to submission of our Bid and finalization of our tie-up with StockHolding Corporation of India Ltd. (“StockHolding”), in response to the Request For Proposal dated [insert] issued by StockHolding, on behalf of the Company, including but not limited to signing and submitting all applications, Bids and other documents and writings, participating in Bidders’ and other conferences and providing information / responses to StockHolding, representing the Company in all matters before StockHolding and generally dealing with StockHolding in all matters in connection with or relating to or arising out of our Bid and the Bid process and is authorized to negotiate and conclude the tie-up. Specimen signature ----------------------------- Name: Designation: Specimen signature ----------------------------- Name: Designation: Certified true copy for and on behalf of [Bidder] Signature of the Authorized Person with date Name of the Authorized Person Company rubber stamp/seal